FOREX Scam: How to Catch a Scammer

By: Jovan Vucetic
Submitted: 2007-01-17 16:15:09
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FOREX is huge business. It’s the mamma of all industries. Almost $3 trillion dollars is exchanged on the Forex currency market every day. With all that money going around, it’s no surprise that there are scammers and hyenas everywhere. You don’t hear of too many scams in the Bonsai tree market, do you?

There is a forex scam problem in the education section of the market in particular, because it isn’t as regulated as the other sections – the forex dealer, broker, institution side. The latter need licenses, government certificates etc., to operate. However, these so called “forex gurus” that show you how to make a killing following their trading systems - they don’t need any certification to operate. They spring up like weeds and no one really keeps them in check.

Ok, I’m going to show you now a quick 1 minute test that you can do to spot if a product, company or a “guru” is a forex scam. Don’t do or buy anything until you do this:

Go to google and search:

“Name of product/person” and forums

“Name of product/person” and scam

“Name of product/person” and refund

People who have been scammed usually complain in forex chat forums. People who want to purchase forex products also visit these forums to hear the opinions of others. There are also a few independent websites around which keep tabs on these scammers. You’ll dig up a lot of good, quick information and if you don’t and the company or product has been around in the market for a while, you are most likely fine and it’s all legitimate.

Other things to do? Use COMMON SENSE.

1. Price. If they’re selling an educational product and the price is too low it could be a ‘teaser’ type, meaning they’re trying to catch you only to sell you something more expensive later. If its way too expensive – it’s an automatic red flag.

2. Refund. If there is no money back guarantee, don’t even bother. Move on.

3. Pages. Don’t be fooled by pages. If they are advertising their product with “You Get 14352” pages as their main selling point, it’s a forex scam. They’ve more likely than not copied the information from some freely available place where you could find it as well. There is probably no original content there. Why would it take someone 14534 pages to explain something that they’re supposedly an “expert” about?

Common sense. That’s all it is. Unfortunately, that is the only safeguard available to the retail forex participant.

Jovan Vucetic runs Margin-Strategies.info which provides unbiased reviews of Online Forex Trading Systems. Margin-Strategies.info is about helping the Forex trader develop both mind and method.

Article source: Expert Articles

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